South Asia: Imported ship-breaking market quiet during Eid holidays

South Asia's imported ship-breaking market witnessed a quiet week amid the Eid holidays. The ongoing lull in new sales and limited activities have resulted in negligible change in prices, SteelMint assessment shows.

India's ship-recycling industry witnessed another dull week with muted prices, lack of tonnage, and no fresh arrivals at the waterfront. Pakistan's failure to upgrade facilities and the ongoing economic and political turmoil in that country have rendered Gadani almost irrelevant. Turkiye remained quiet during the Eid celebrations, with minimal local activity reported.

India

Alang's ship-breaking market has witnessed a decline in activity leading to a cautious outlook among buyers. Many end-buyers are adopting a wait-and-watch approach, closely monitoring market developments before making commitments to purchase new units.

Last week, no new vessels were reported at Alang.

Bangladesh

The Eid holidays and post-budget crackdown on fresh letters of credit (L/Cs) caused a significant slowdown in the Bangladesh market last week. Reapproval of L/Cs is necessary to meet the increasing demand and capacity in local shipyards. Until financing issues are resolved and prices begin to improve, the anticipated vibrant summer in Chattogram may be subdued.

Last week, four vessels arrived at Chattogram port:

• Chian Jin (1,416 LDT), a reefer
  
  
• DPL Ayur (1,020 LDT), general cargo
  
  
• Jasmine II (9,563 LDT), bulk carrier
  
  
• SCO Qingdao (3,771 LDT), container
  
  

Total tonnage at Chattogram port last week was 28,735 LDT, of which four vessels arrived and two were beached.

Pakistan

Pakistan's market remained unchanged in terms of transactions. The ship-recycling market has remained inactive since January. Pakistan has struggled to compete with Bangladesh and India in terms of attracting vessels for recycling. Furthermore, the market has faced challenges in obtaining the necessary finance to execute deals.

Despite challenges, the IMF was recently credited to Pakistan. However, the allocation of funds to the ship-recycling industry remains uncertain.

Last week, no tonnage was reported at Gadani port.